The Miami-based owner of Mega TV and a collection of radio stations under the “LaMúsica” brand enjoyed a 7% consolidated revenue gain during the third quarter.
That said, the growth for Spanish Broadcasting System (SBS) was driven by its radio stations, and not its television operation.
Mega TV’s revenue in Q3 was flat, shift to $3.77 million from $3.78 million.
For SBS’s radio properties, which are ratings leaders in such markets as New York and Puerto Rico, revenue moved to $32.5 million from $30.3 million.
Adjusted radio OIBDA was up 11% to $13 million, from $11.8 million.
It was a different story for Mega TV, with adjusted OIBDA sliding to $620,000 from $1.46 million.
Ex-political, a similar earnings portrait was seen, with radio adjusted OIBDA rising 17% to $13 million and TV adjusted OIBDA sinking 40%, to $601,000.
The audio division performance was duly noted by Chairman/CEO Raul Alarcón Jr.
“During the third-quarter, our 10% revenue growth, excluding political, was once again at or near the top of the announced results for the radio industry,” Alarcón said. “Our strong revenue growth and cost-controls helped drive our 40% radio adjusted OIBDA margins in the quarter, which were likewise among the highest in the radio industry.”
Despite the net revenue gain, higher station operating expenses — and corporate expenses — had their role in bringing SBS to a net loss of $345,000 (-5 cents per share) in Q3. A year earlier, SBS had net income of $8.67 million ($1.18 per share), but this was the result of an income tax benefit, thus skewing the results.
Looking to Q4 and fiscal year 2019, SBS remains confident “as to what we believe will be, by all indications, an exceptional operating performance that will extend into 2020,” he said.
As of 3:07pm Eastern on Friday, SBS shares were priced at $0.25.
It’s a 62.3% rise from Thursday, and the best performance since Sept. 2 for SBS.